DEAL: world's first sovereign green sukuk

Author: Karry Lai | Published: 1 Mar 2018

Indonesia’s landmark sovereign green bond was the first in the world to be structured as a sukuk. The February 22 issuance also marks the first time the ASEAN national green bond framework has been used since its introduction in November. 

The $1.25 billion five-year sukuk al-wakala, which was issued on February 24 on the Nasdaq Dubai, was priced at 3.75%. Abu Dhabi Islamic Bank, CIMB, Citigroup, Dubai Islamic Bank and HSBC are joint bookrunners. Strong demand for the issuance drove the coupon down - it was previously expected to be in the region of 4.05%. It was rated Baa3 (investment grade) by Moody's.

 "We believe that Indonesia continues to be one of the key issuers from Asia with strong credit standing in the space of sovereign bonds," said Giosha Ralie, managing director, head of corporate and investment banking, Citi Indonesia. "The bond is priced at the...